This shouldn’t come as a great surprise…no, not the fact that bankers have a conscience (the article doesn’t go that far and I doubt the research would have obtained a believable response)!!!

We are ALL worried about the impact of a “global recession” but banking has been in a cultural crisis for years. Financial and political “mismanagement” led to a financial crisis that, without decisive action, has created a Social crisis.

Now, finding a solution IS something that is worth losing sleep over! But, on the evidence of the last few years the answers will not come from the people who brought us here…at our expense.

Another global recession triggering a catastrophic banking crisis is keeping bankers awake at night, according to a survey of the world’s banking industry from the Centre for the Study of Financial Innovation (CSFI).

The main cause of anxiety is the eurozone crisis, with the shock of a euro collapse liable to hit banks not just in Europe but in all major regions of the world, says CSFI’s annual Banking Banana Skins survey, produced in association with PwC.

OK, so, in Economics and Finance we hear a great deal about “models”. Despite the obvious and much written about, failings, great store is put in their accuracy and ability to predict…even though, we already KNOW that, meaningful prediction about future events, based upon past events and outcomes, IS NOT POSSIBLE!

…we can’t begin to rebuild trust, an industry or economies without reliable tools:

Financial and Political mismanagement, misinformation, manipulation and mis-selling brought us to this point and mere rhetoric about “change” cannot mask these facts!

TRUST needs a foundation: the failure of past models, techniques and tools tell us that, without TRANSPARENCY, we need evidence from those that claim the ability and desire to (re)build a RESILIENT and SUSTAINABLE future.

One in which the integrity of the entire “structure” is ROBUST from the bottom up, or inside out [i2o].

Mark Mobius is one of the most influential voices in Global investments and he is talking about when and what, NOT “if”, in terms of “tipping point” for the next global financial crisis. He’s right..

The foundations of the world economic system are so decayed and so corrupted that even a stiff breeze could potentially topple the entire structure over. Over the past couple of months a constant parade of bad economic news has come streaming in from Europe, Asia and the United States. Signs of an impending economic slowdown are everywhere. So what “tipping point” will trigger the next global economic downturn? Nobody knows for sure, but potential tipping points are all around us. Read more of this post

The sheer scale of the gamble of pumping so much new money directly into markets that were shown to be (at very least) morally corrupt, had failed so spectacularly yet STILL remain little changed, unpunished and unbowed, will only be apparent when it explodes in the face of the Political and Financial elites.

They will be held accountable for their actions by the rest of society upon who the economic and social burden of TBTF has, well and truly, fallen.

AIG says it will repay, in full, the $182 billion it was lent by the American taxpayer BUT it has a long way to go to rebuild its reputation…and the new financial world that they have created is a pretty uncertain place!

“I would not call [the bailout] a success,” says Wharton insurance professor Kent Smetters, “but the alternative is always hard to assess.” Even though the taxpayer may eventually not lose in this case, Smetters worries that the AIG bailout and other post-crisis government actions “have likely worsened the [too] big-to-fail problem”